Can homebuyers today actually afford the homes they buy?

Can homebuyers today actually afford the homes they buy?

Last week, ATTOM data Solutions, curator of the nation’s largest multi-sourced property database, reported that nearly 1 in 4 (22.8%) of all purchase loan originations in our country now require a co-borrower(s)’ credit to afford the loan approved. Co-borrowers are multiple, non-married borrowers listed on the mortgage. In some of the nation’s top real estate markets – which are coincidentally some of the most expensive with rapidly rising home prices – co-borrower rates are eye-popping: half of all new home loans in San Jose now needs a co-borrower’s credit to satisfy the loan requirement (51%), nearly half in Miami (45%), 39% in Seattle, 31% in Los Angeles and 29% in San Diego.

It begs the question: can these new homebuyers actually afford the homes they buy?

Once and for all: the American Dream is alive and meaningful

Once and for all: the American Dream is alive and meaningful

We don’t know when it began, but the American Dream seems to have earned itself a bad name, or at least the accusation of being irrelevant. We all have heard the American Dream is dead –here, here, and here – in too many headlines to list; a report just released last week declared 75% of Americans are losing faith in the Dream, and that just 1 in 5 say they are living it. But somehow, for something that is supposedly irrelevant or on life support, the American Dream finds itself in the news a lot, particularly lately. So let’s get to the bottom of this: do Americans care about the American Dream, or not?  Short answer: yes.

Millennials’ confidence to afford home lowest in 18 months

Millennials’ confidence to afford home lowest in 18 months

Affordability is by far the biggest barrier to homeownership for Millennials.  This fiscally conservative generation is looking for greater value and flexibility from their dollar in everything they do - including housing.  Through ValueInsured’s quarterly survey, we learned that even among Millennial non-homeowners who express an interest in buying a home “in the next few year”, the confidence that they could actually afford one they would like to buy continues to hover below 50%.

Just one-third of U.S. homes have recovered to pre-recession levels

Just one-third of U.S. homes have recovered to pre-recession levels

It could be another eight years before all homes recover their value: Trulia

Most American homes are worth less now than they were before the recession, according to a report out Wednesday. 

Fresh data from real-estate website Trulia show that just 34.2% of homes have returned to the peak levels registered before the onset of the recession in 2008. What’s more, Trulia estimates it could take until 2025 for a true national recovery in home prices.

MBA - Americans Concerned Hot Housing Market Could Be Heading for Correction

MBA - Americans Concerned Hot Housing Market Could Be Heading for Correction

Americans have simmering concerns about overheated house prices and increasingly suspect that a housing price correction may be imminent, reported ValueInsured, Dallas.

"We see more homebuyers concerned with timing the market," said ValueInsured CEO Joe Melendez. "This is especially true for Millennials, who are more likely to switch jobs, relocate or need to upsize in the next few years. No one wants to buy at the peak and find themselves underwater as so many did a decade ago."

Consumer Affairs - Is the housing market at a tipping point?

Consumer Affairs - Is the housing market at a tipping point?

This supply and demand imbalance has sent home prices soaring. Prices are up so much in some markets that a new homebuyer survey by ValueInsured uncovered significant concerns among many buyers that the housing market is in for a price correction.

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